India's biggest sugar refiner Shree Renuka Sugars has acquired Brazilian sugar and ethanol producer Vale Do Ivai S.A. Acucar E Alcool for $82 million. The acquisition includes two sugar and ethanol production facilities with a cane crushing capacity of 3.1 million tonnes per annum, with an enterprise value of $240 million.
The Brazilian firm sources 70 percent of its sugarcane requirement from its owned or operated plantations and adds significant refining capacity to Shree Renuka, and has synergies with the Indian refiner and marketer of sugar.
The acquisition provides it an entry opportunity in Brazil, the world''s largest sugar producer and exporter, and will enhance its competitiveness in the global sugar business. Shree Renuka expects to gain operational control of the Brazilian firm from January and aims to increase its size in years to come.
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